India's Strong Employment Outlook Reflects Robust Economic Growth

India has emerged as a beacon of optimism in the Asia-Pacific region, buoyed by its impressive 8.2 per cent GDP growth. According to a recent survey by ManpowerGroup, India ranks sixth globally for its employment outlook during the July to September quarter of 2024, boasting a Net Employment Outlook (NEO) of +30 per cent points, which is eight points higher than the global average.

Surpassing China by two per cent points in NEO, India's robust hiring sentiment is reflected across various regions and industry sectors. Employers in north India displayed the strongest intent to hire, followed by the western and southern regions, while the outlook in the eastern regions was comparatively subdued.

Large organizations, particularly those with a capacity of 1,000 to 4,999 employees, exhibited the highest optimism in hiring, followed by small and medium-sized enterprises. The financial sector, real estate, and healthcare and life sciences industries lead the market in terms of hiring intentions, while sectors such as communication services, transportation, logistics, and automotive face weaker outlooks.

Interestingly, despite concerns about job displacement due to automation, nearly 68 per cent of employers plan to increase their workforce in response to the adoption of AI and Machine Learning over the next two years.

Commenting on the findings, Sandeep Gulati, Managing Director of ManpowerGroup India and Middle East, highlighted the impact of global slowdown and political uncertainty on India's IT sector. He emphasized the need for cautious short-term resource planning among employers. Gulati also noted the increased investor interest in the real estate sector, signaling potential opportunities for talent development and long-term strategic planning.

In conclusion, India's resilient employment outlook underscores its ability to navigate economic challenges and seize opportunities for growth. Strategic talent planning and investment in skills development are crucial for bridging the gap between demand and supply in the job market, ensuring sustainable progress and prosperity.

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